Pharmaceutical and life sciences deal volume up 53% in 1st-qtr, sets stage for heightened activity in 2014

Pharmaceutical and life sciences (PLS) merger and acquisition (M&A) volume increased 53.1% in the first quarter of 2014, highlighting the expected increase in deal activity from the previous year, according to Pharmaceutical and Life Sciences Deals Insights Quarterly, a quarterly analysis of M&A trends and outlook for the PLS sector issued today by PwC US.

“The first quarter of 2014 began where 2013 left off with the continuation of robust M&A activity in the PLS industry. CEOs [chief executives] are increasingly optimistic about their companies’ prospects and are seeking opportunities to grow their businesses through adopting new technologies, optimizing shareholder value and diversifying their portfolios,” said Dimitri Drone, US pharmaceutical and life sciences deals leader, PwC. “We’re working with clients in developing strategies to reassess and realign their portfolios in light of the evolving industry dynamics and ultimately helping to expand their businesses,” he added.

Deal value up 20% on previous quarter

There were 49 PLS transactions in the first quarter of 2014, compared to 32 deals in the fourth quarter of 2013. Total deal value also jumped more than 20% to $44.9 billion in the first quarter of 2014 compared to around $37.2 billion in the fourth quarter of 2013. On an annual basis, deal volume and value increased 40% and 122.6%, respectively, in the first quarter of 2014 compared to the first quarter of 2013.